Company Number: 12762280

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital, indicating solvency. However, a notable decline in net assets from £23,227 in 2023 to £14,293 in 2024 and increasing current liabilities relative to current assets suggest emerging liquidity pressures. The micro-entity filing status limits detailed financial disclosure, increasing uncertainty.

2. Key Concerns:

• Declining net assets and total assets less current liabilities over the last year, indicating potential erosion of financial strength.
• Increase in current liabilities by over £7,000 year-on-year, reducing net current assets and potentially signaling short-term cash flow strain.
• Reliance on a single director and shareholder who holds full control, which may concentrate operational and governance risk.

3. Positive Indicators:

• Positive net current assets (£9,772) and net assets (£14,293) at the latest year-end demonstrate the company remains solvent.
• Consistent current asset base (~£51,500) supporting working capital requirements.
• No overdue filings or compliance issues evident, indicating good regulatory standing.
• Business is active with a growing employee count (from 2 to 3) suggesting operational continuity.

4. Due Diligence Notes:

• Investigate reasons behind the decline in net assets and increase in current liabilities to assess sustainability of financial position.
• Review cash flow statements if available to confirm liquidity trends and ability to meet short-term obligations.
• Assess the robustness of the management structure given the single director/shareholder setup.
• Confirm the impact of micro-entity reporting limitations on the completeness of financial data and risk disclosures.
• Examine trading performance and market conditions for the specialised retail book sector to evaluate operational risks.